Growth from emerging markets Jon Fredrik Baksaas - President & CEO 1 Strong international positions Total Mobile Country population Market share penetration (mill) Bangladesh 146 14% 61% Pakistan 157 35% 16% Thailand 65 68% 32% Serbia 7.5 86% 41% Malaysia 27 77% 28% Ukraine* 48 108% 43% Hungary 10 93% 34% Montenegro 0.6 90% 58% Russia* 145 107% 31% Total 600 60% 30% * Source: AC&M 2 We plan for 100% real mobile penetration in all markets Reported penetration Real penetration** Malaysia 77% 72% Thailand 68% 55% Ukraine* 108% 65% Pakistan 35% 29% Bangladesh 14% 13% * Source: AC&M ** Note: Telenor estimates 3 Substantial subscription growth Pakistan Bangladesh Ukraine* 10 25 14 8 12 20 10 6 15 8 4 6 10 4 2 5 2 0 0 0 Q1 2006 Q1 2007 Q1 2006 Q1 2007 Q1 2006 Q1 2007 +259% +89% +46% * Source: AC&M Note: Growth in mobile subscriptions last twelve months 4 Combined with extreme price competition Pakistan Bangladesh Ukraine* Instaphone 1% Teletalk 2% URS 4% Golden Telecom 1% Paktel 2% Citycell 5% Telenor Astelit Warid 16% 12% 16% Banglalink 14% Kyivstar 43% Ufone Aktel 21% Mobilink 17% Grameenphone UMC 44% 61% 40% -30% -60% -60%** * Source: AC&M ** Note: Telenor estimates Note: Price reduction last two years 5 Driving network investments Pakistan Bangladesh Ukraine Total traffic increase 374% 245% 187% CAPEX/ Sales 172% 52% 33% Note: Figures are based on last twelve months. Telenor estimates on Ukraine. 6 Remember what happened in Malaysia MYRm 1 000 900 % 26 800 h wt ro 700 G 600 500 Growth 13% 400 300 200 Average price Average price 100 decline ~25% decline ~10% 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 00 01 01 01 01 02 02 02 02 03 03 03 03 04 04 04 04 05 05 05 05 06 06 06 06 07 5 operators 3 operators Note: DiGi quarterly revenues 7 Growth through profitable acquisitions 8 Reasons for M&A Superior governance structure and highly experienced management Global procurement synergies Contribute to consolidation Increasing importance of geographical clusters Undervalued long term ARPU expectations 9 Acquisition criterias Large population and low penetration Creation of regional clusters Predictable regulatory environment Cultural fit Strong business case 10 Closer look at Vietnam Market shares Q1 2007 3% 4% 19% 37% 36% HT Mobile S-Fone Vietnam Facts Viettel Population 2006 (millions) : 80.9 Vinaphone Penetration Q1 2007 : 20% Mobifone Viet Nam GDP/pop 2006 (USD) : 730 GDP growth : 8% 11 Closer look at the region 12 Telenor plug and play model Acquisition Next two After First month three months months Get management Launch Day to day operation Segmentation Re-branding strategy in place Re-plan network Fix distribution Re-negotiate contracts to get procurement savings Get Telenor expats Launch first go to market offering 13 Are there other growth opportunities? 14 Leveraging on our asset base 123 million subscriptions Advanced distribution with 350k points of sale Close to 100% coverage Backbone capacity 15 16 Payment services Nokia 3110 classic Community Information Center Mobile Internet Stay in touch with loved ones abroad Telemedicine Job Search Home & Abroad Government Applications 17 Advertising and mobile TV Nokia 3110 classic 18 Summary Still strong penetration growth Exploring new acquisition targets Utilize attractive asset base for new initiatives 19.